Airlines and cruise stocks decline as oil prices rise to a 5-month high

Oil prices rose to a five-month high on Monday, weighing on shares of airlines, cruise operators and other companies whose finances are directly affected by fuel prices.

Oil prices jumped more than 3% This came last weekend after the Treasury Department announced comprehensive sanctions on the Russian oil industry, raising concerns about possible disruptions to global supplies.

Brent crudeThe global benchmark rose more than 1 percent to about $81 a barrel, the highest level since August. West Texas IntermediateThe U.S. crude benchmark was trading at $78.70 a barrel Monday afternoon, up about 3% from Friday.

Airlines, for which fuel is a major cost, felt the pressure on Monday. Delta Air Lines shares (D) and United Airlines (first) decreased more than 2%. american airlines (the) and decreased by more than 4%. Cruise operators such as Carnival (CCL) and Norwegian Cruise Line (NCLHThe two indices also decreased by about 1.6% and 0.6%, respectively.

On the flip side, oil and natural gas producers were among the best performing companies on the S&P 500 on Monday. Baker Hughes shares (BKR) by approximately 4% and ExxonMobil (XOM) advanced near 3%.

Travel stocks ended the year strong as oil prices trended lower and consumers showed few signs that higher prices had dampened strong post-pandemic travel demand. United Airlines was one of the best-performing stocks in the S&P 500 in 2024. Its stock has more than doubled in value in the past year. Delta has gained about 69% over the same period. Royal Caribbean (kick) The stock wasn’t changed much on Monday but is up more than 87% over the past 12 months.

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